Cramo's Business Review for January-March 2019

Cramo Plc    Business Review 2 May 2019, at 9.00 am (EET)

Cramo's Business Review for January-March 2019

Acquisitions supporting positive sales development in the first quarter




Reported with illustrative IFRS 16 impact*
1-3/19 1-3/18 Change % 2018
Sales 200.6 175.3 14.4% 779.8
Comparable EBITA* 24.1 23.9 0.8% 133.0
% of sales 12.0% 13.6%   17.1%
EBITA 20.9 23.0 -9.1% 127.0
% of sales 10.4% 13.1%   16.3%
Comparable ROCE, %* 9.5% 10.9 %   10.2%
ROCE, %* 8.9% 10.9 %   9.7%
Net debt / EBITDA* 2.92 2.02 44.5% 3.02
Net interest-bearing liabilities 820.1 548.4 49.5% 834.7
1-3/19 1-3/18 Change % 2018
Sales 200.6 175.3 14.4% 779.8
Comparable EBITA* 24.1 23.1 4.0% 130.1
% of sales 12.0% 13.2%   16.7%
EBITA 20.9 22.3 -6.1% 124.0
% of sales 10.4% 12.7%   15.9%
Comparable profit for the period* 13.7 15.7 -12.5% 91.2
Profit for the period 11.0 14.8 -25.7% 84.7
Comparable earnings per share (EPS), EUR* 0.31 0.35 -12.7% 2.05
Earnings per share (EPS), EUR 0.25 0.33 -25.9% 1.90
Comparable ROCE, %* 10.1% 11.9 %   11.0%
ROCE, %* 9.4% 11.9 %   10.5%
Comparable ROE, %* 16.5% 16.9 %   15.7%
ROE, % 15.0% 16.9 %   14.7%
Net debt / EBITDA* 3.19 1.83 74.5% 2.88
Net interest-bearing liabilities 820.1 430.1 90.7% 703.5
Gross capital expenditure (incl. acquisitions)*
32.7 76.5 -57.3% 516.8
of which acquisitions/business combinations 0.0 41.0   313.2
Cash flow from operating activities* 48.8 20.8 134.7% 195.5
Cash flow after investments* 12.4 -30.5   -150.4
Average number of personnel (FTE) 3,003 2,581 16.4% 2,753

* See specifications on pages 1-2 in the PDF version of the Business Review (attached to this Stock Exchange Release)


Cramo’s first quarter performance was mixed. The Equipment Rental division fell short of expectations as lower than expected organic sales growth impacted on the profitability. The Modular Space division’s sales continued according to expectations, but profitability for the first quarter was negatively affected by the integration of the NMG. The Group’s organic sales growth was 2.4%, supported by both business divisions. Comparable EBITA increased by 0.8% to EUR 24.1 million and was driven by the Modular Space segment. On 18 February 2019, Cramo announced that the Board of Directors has approved a demerger plan concerning the spin-off of the Modular Space business into a new listed company. Actions related to the partial demerger are ongoing and the listing is expected to take place no later than in the third quarter of 2019.    

The Equipment Rental division’s sales growth was 5.8% in local currencies, supported by KBS acquisition. However, organic sales growth of 1.3% did not meet our expectations although sales increased compared to the previous year in almost all countries. Especially many Eastern European countries and Norway continued to improve sales and profitability was supported by good demand. However, in Sweden, sales were negatively affected by the ending of large projects and delays in new projects. We are constantly following the market conditions in all countries in order to adapt to changes in demand. In order to secure the profitability going forward, in Sweden, we are optimising the fleet mix within the regions and improving our sales efficiency. In Finland and Germany, we are currently executing transformation programmes, including various operative performance improvement actions. Positive results are expected to be seen gradually from Q2 19 onwards.

In the Modular Space division, total rental sales improved by 49.8% in local currencies, driven mainly by the Nordic Modular Group (NMG) acquisition completed during the last quarter of 2018. The integration is proceeding according to plan and positive impact is already visible in terms of market position and business model expansion. Also, organic rental sales increased by 12.0%, where all countries contributed to growth. Comparable EBITA improved by 45.3%, supported by the NMG acquisition, positive development in rental sales and other operative measures.

The rental market outlook varies between the countries, with slowing growth in Sweden, and a stable market in Finland, Norway, Germany and Austria. In the Eastern European countries, including the Czech Republic and Slovakia, favourable market conditions are expected to continue. The outlook for the Modular Space market remains strong.

Cramo’s purpose is to drive the sharing economy. We believe digitalisation is one of the most important enablers of more efficient and accessible sharing. On 18 February, we launched a new digital solution for smarter rental including an easy-to-access web portal and two mobile apps, which make it easier for our customers to rent and manage their equipment digitally and manage returns of equipment. In order to offer the easiest possible access to shared resources, we will continue to invest in digitalisation also in the future. 


The European Rental Association (ERA) forecasts that the equipment rental market will grow in 2019 in all Cramo’s operating countries within the scope of ERA’s forecast, varying approximately between 4 to 6%. Forecon estimates that the equipment rental market will grow in 2019 by 3% in Finland, 1% in Sweden, 2% in Estonia and 6% in Lithuania.

In equipment rental, changes in demand usually follow the construction market with a delay. The construction market outlook for the year 2019 includes large country-specific differences. According to Euroconstruct November 2018 estimates, the construction market will decrease by 3.8% in Sweden and by 1.2% in Finland mainly due to a decline in residential construction. In Norway, the construction market is expected to grow by a solid 4%. In Germany and Austria, growth is forecasted to be 0.1–1.5%. Growth is rapid in the Czech Republic, Slovakia, Hungary and Poland, where Euroconstruct estimates on average 9.1% market growth. Forecon’s construction market growth estimate for Lithuania and Russia is approximately 2–4%, whereas in Estonia the market is forecasted to decline slightly by 1%. The Sveriges Byggindustrier kept their latest March 2018 construction market outlook unchanged, indicating that the Swedish construction market will decline by 3% in 2019. The Confederation of Finnish Construction Industries forecasted in April 2019 that the peak in the construction market has reached and a slight decrease is projected thereafter.


In 2019, Cramo will publish its Half Year Financial Report and Q3 Business Review as follows:


A conference call for analysts, investors and press will be held on 2nd May at 12.00 pm (EET). To participate in the conference call please dial in 5-10 minutes prior to the start time on

The conference call will be held in English. Questions can be asked after the presentation.

A replay of the conference call will be available later on the same day at


Leif Gustafsson
President and CEO

Further information:
Mr Aku Rumpunen, CFO, tel: +358 40 556 3546, email:

Nasdaq Helsinki Ltd.
Major media

Cramo is Europe’s second largest rental services company specialising in construction machinery and equipment rental and rental-related services as well as the rental of modular space. Cramo operates in about 300 depots in 14 countries. With a group staff around 2,700, Cramo's consolidated sales in 2018 was EUR 780 million. Cramo shares are listed on Nasdaq Helsinki Ltd.

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